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Kaupthing and SPRON to initiate merger discussions

04-30-2008 06:44 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Kaupthing Bank

Kaupthing Bank hf. ("Kaupthing") and Sparisjódur Reykjavíkur of nágrennis hf. ("SPRON") have decided to enter negotiations on a possible merger between the companies. Negotiations are expected to be completed in approximately four weeks.

Any merger of the companies is subject to the approval of a SPRON shareholders' meeting, the Board of Directors of Kaupthing, the Icelandic Financial Supervisory Authority, the Icelandic Competition authority and the companies' creditors.

Further information

For further information please contact Ingólfur Helgason, CEO of Kaupthing Bank in Iceland, tel: +354 444 6121.

About Kaupthing Bank

Kaupthing Bank is a Northern European bank offering integrated financial services to companies, institutional investors and individuals. These services include corporate and retail banking, investment banking, capital markets services, treasury services, asset management and comprehensive wealth management for private banking clients.

The Bank operates in all of the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden) and in 6 countries in mainland Europe (the UK, Luxembourg, Belgium, Switzerland, Germany and the Isle of Man), as well as the US, the Dubai International Financial Centre (DIFC) and the Qatar Financial Centre (QFC). In Denmark, Kaupthing Bank operates under the name FIH Erhvervsbank. As of 31 December 2007 the number of full-time equivalent positions was 3,334 at Kaupthing Bank and its subsidiaries. www.kaupthing.com

About SPRON

Reykjavik Savings Bank (SPRON) was established on March 5th 1932 when several members of the Reykavik trade workers union united to form a savings bank. The savings bank´s main purpose was to fund trade workers in their efforts to increase their business. The 63 original founders, each vouched for ISK 500 as backing for the Bank´s operations. On April 28th 1932, Reykjavik Savings Bank formally opened for business.

SPRON´s main purpose it to serve as a trustworthy, universal banking institution which fulfills the needs of its customers and actively participates in social and economic development in the greater Reykjavik area. SPRON operates in accordance with Icelandic laws regarding financial institutions. The Icelandic Financial Supervisory Authority supervises SPRON´s activities, as well as other financial institutions in Iceland. www.spron.is

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